Canadian mining company Solaris Resources has secured a C$130m ($97.2m) investment from an affiliate of Zijin Mining Group, a Chinese multinational mining company.

The deal involves the issuance of more than 28 million common shares, at C$4.55 apiece, in a private placement.

This marks a 14% premium to Solaris’ stock close on 10 January 2024.

The investment by Zijin will result in it owning approximately 15% of Solaris’ common shares on a fully diluted basis.

The infusion of capital is earmarked for the advancement of Solaris’ flagship Warintza Project in Ecuador, as well as for working capital and general corporate requirements.

Spread across 268km², the Warintza project is located 40km north of the Mirador mine.

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Under the terms of the subscription agreement, Zijin will have the right to nominate one member to Solaris’ board, provided it maintains a minimum 5% ownership of the outstanding common shares.

The company has also been granted participation rights to maintain its ownership percentage in the company under certain conditions.

The completion of the private placement is contingent upon several regulatory approvals including a nod from the Toronto Stock Exchange, consent under the Investment Canada Act and clearances from relevant authorities in China.

Additionally, the common shares will be subject to a statutory hold period as per applicable securities laws.

Solaris president and CEO Daniel Earle said: “We take tremendous pride in announcing our new strategic partnership with Zijin and look forward to leveraging its deep technical expertise and financial capacity in delivering the full potential of one of the last remaining greenfield copper districts at low elevation and adjacent to infrastructure available globally.”